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The Impacts of Product Packaging Elements on Brand Image and Purchase

Intention — An Empirical Study of Phuc Long's Packaged Tea Products

Article · February 2018

DOI: 10.18178/ijtef.2018.9.1.580

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 International Journal of Trade, Economics and Finance, Vol. 9, No. 1, February 2018

The Impacts of Product Packaging Elements on Brand

Image and Purchase Intention — An Empirical Study of
Phuc Long‟s Packaged Tea Products
Mai Ngoc Khuong and Nguyen Thi Huyen Tran


Abstract—This research aimed to examine the effects of II. LITERATURE REVIEW
product packaging on purchase intention through the mediating
role of brand image, with the example of Phuc Long’s packaged A. Product Packaging Elements
tea products. Quantitative approach is applied with the sample
Product packaging plays as an integral role for conveying
size of 410 consumers living in Ho Chi Minh City (HCMC),
Vietnam. The results showed that packaging font, picture, shape the brand message to its target customers [8] and the
and color have direct and indirect associations with purchase knowledge about the commodity. “A good packaging is far
intention whereas product information, ease of use and handle more than a salesman, it is a flag of recognition and a symbol
have indirect ones. However, material and size do not have any of values” [9]. In this research, product packaging combines:
influences. Suggestions are given to develop a differentiated visual (color, picture, font, shape and size), informational
packaged for tea products by: (1) using eye-catching pictures
factor (packaging material and product information) [10], and
and (2) vivid colors, (3) designing a good packaging shape, (4)
carefully choosing the amount of product information, and (5) package-ease of use and –ease of handle [11].
designing an easy-handling, or –opening and –closing, or Packaging color increases brand identification and widens
–disposing package. visual difference [12]. Besides, it emphasizes, generates
emotional responses and intensifies memorability of
Index Terms—Brand image, packaging design, product consumers about a certain product. About 62 to 90 percent of
packaging, purchase intention. people usually consider a product based on only its packaging
color [13].
Packaging picture helps to grasp consumers‟ attention and
I. INTRODUCTION
plays as an informational input to compare and differentiate a
In current marketplace, it is estimated that consumers brand over others [14]. Nearly a half of consumers claimed
spend no more than one minute to scan for and decide to buy that they use pictures as an indication of product quality [15].
the products they need [1]. Hence, constantly improving Since packaging font is a mean of communication between
product packaging is believed to be one of the most feasible producers and consumers, companies who have much
approach that businesses can do to gain consumers‟ attention. experience on this element are more successful than ones who
Product packaging is considered as a “sales promotional tool do not [10]. Particularly, a font style which is small and dense
for the organizations” [2]. An appealing and differentiated in writing can result in misunderstanding and inaccurate
package can help a product to stand out among other similar information for consumers [4].
items [3] and thus, it acts as a vital factor in stimulating Packaging shape is an ideal indication of the product‟s
purchase intention [2], [4]. Furthermore, product packaging volume [16] and it also delivers the competitive advantages of
also helps to shape the brand image in consumers‟ mind [5]. that brand [17]. No matter what the design of the shape is,
Besides, tea is a healthy and traditional beverage, manufacturers should ensure that it can bring the product
representing the communication culture of Vietnam. arrive in a good condition and in a form of a package that can
Although Vietnam is one of the largest exporters in tea sector, attract consumers [18].
the value of tea products is so low. One of the reasons are Products with the large package are usually consumed
weak brand positioning in marketplace [6]. Additionally, in more than items with the small one [19] because consumers
HCMC, Phuc Long with the model of tea and coffee shop has believe the unit cost of those products is much smaller than,
been one of the most well-known brand since 2013 and it was and they also less concern about running out of the product
ranked the third in the list of brand recognition [7]. In recent [20]. Therefore, a product being of various sizes influences
years, although most Phuc Long‟s customers prefer to buy consumer purchase intention more significantly [21] than an
take-away drinks such as milk tea, cappuccino, blended item which is of only one size.
beverages, etc., a wide variety of packaged tea products are Product information printed on the package helps to
still purchased regularly. compare quality and value of a certain product to other similar
items [4]. They are usually about quantity, instructions for
using, ingredients, name of manufacturers and retail stores,
Manuscript received October 15, 2017; revised January 3, 2018. and target consumers, etc. Besides, although product
Mai Ngoc Khuong and Nguyen Thi Huyen Tran are with the School of information can “reduce the uncertainty and enhance product
Business Administration, International University, Vietnam National
credibility”, it also can make consumers confused if there is
University Ho Chi Minh City, Vietnam (e-mail: [email protected],
[email protected]). too much or misleading and inaccurate information [22].

doi: 10.18178/ijtef.2018.9.1.580 8
 International Journal of Trade, Economics and Finance, Vol. 9, No. 1, February 2018

Packaging material plays as an important role in preventing positively affect Consumer Purchase Intention.
product from losses [23]. Besides, it also helps to protect the H3: The effect of Product Packaging Elements on
product from moisture, heat, dust, etc. [24]. Moreover, Consumer Purchase Intention is mediated by Brand Image.
products packaged in glass material, which is evaluated as an
environmentally friendly material [25], look high-quality
while ones packaged in folding boxed cartons look cheap III. METHODOLOGY
[26].
Generally, packaged-ease of use is defined as the degree to A. Research Design and Data Collection
which a consumer believes that using a particular product Quantitative approach is applied. Target population is
would be free of effort [27]. Particularly, consumers can use consumers living in HCMC no matter if they have known
that product without the need for an advanced explanation or about Phuc Long or bought its products or not. The sample
instruction manual. size is 410 respondents. In terms of data analysis technique,
Package-ease of handle is defined as the extent to which SPSS is mainly used to provide information of descriptive
consumers can store or handle products and prevent them analysis, reliability test, exploratory factor analysis, multiple
from damage or breakage. In [11], it is concluded that this regression, and path analysis.
dimension does not have any significant associations with Regarding questionnaire, 45 items are adapted from
purchase intention under any types of consumer experience. numerous authors to measure the extent of brand image,
However, when consumers are able to touch or use the purchase intention and product packaging elements. They are
product, it is more important [11]. rated by the five-point Likert scale (1 = strongly disagree, 5 =
strongly agree). Besides, five questions related to
B. Brand Image
respondents‟ profile are also included. The questionnaire is
Brand image refers to the extent to how consumers delivered in two forms: online and offline self-administered
associate to a particular brand [28]. In other words, it is about survey.
how consumers think and feel about that brand [29] and it
includes a set of attributes which are significant to consumers B. Factor Analysis and Reliability
[30]. Brand image is very important since it helps to position For the group of independent variables, the research
the brand in the market [31]. Furthermore, on the basis of initially proposed nine elements of product packaging.
brand image, consumers can process the information of a However, questions related to Packaging Size (PASIZE) (α =
certain brand and then differentiate it with others [30], and 0.646) is removed because the value of Cronbach‟s Alpha
they also can recognize their needs and satisfactions towards does not meet the requirement of larger than 0.70 [38].
that brand [32]. A good brand image can stimulate consumer Besides, five measurement items are also deleted to increase
purchase intention and increase the brand‟s value [32]. The the value of Cronbach‟s Alpha. After that, the remaining
brand with a strong image will have more competitive independent variables are combined into five groups: (1)
advantages over their rivalries [33]. Color, (2) Picture, Font and Shape, (3) Product Information,
C. Consumer Purchase Intention (4) Material, (5) Ease of Use and Handle.
Purchase intention is defined as consumers‟ feelings, TABLE I: SUMMARY OF INDEPENDENT VARIABLES (N = 410)
thoughts, experience and other external factors that they take Number of Cronbach’s
Variable
into account before purchasing a specific product or service items Alpha
[34]. In other words, it represents to what consumers think Color (PACOLO) 4 .775
Picture, Font & Shape (PAFOPISH) 7 .844
they may and will buy [35] and the degree to how satisfactory Product Information (PAINFO) 3 .862
a product or service meets the consumers‟ demand [36]. Material (PAMATE) 4 .810
Besides, consumer buying behavior can be observed from two Ease of Use and Handle (PAEOUNOH) 6 .918
different perspectives: (1) what products consumers think
about and (2) where consumers tend to buy that item [37]. In Particularly, the eigenvalues of theses groups are larger
the case of where consumers make these decisions than 1, accounting for 65.429% of the total variance. KMO is
independently, what to buy versus where to buy, 0.933 [39], indicating the suitability of dataset to conduct
informational factors of product packaging tend to be more principal component analysis, and the value of Bartlett‟s Test
important than visual ones. Moreover, for consumers who is 0.000 [40], showing the sufficient correlation among
decide to buy a good without planning before, extrinsic variables for further tests. Additionally, Cronbach‟s Alpha
attributes of the product packaging are heavily essential [15]. ranges from 0.775 to 0.918, displaying high reliability (Table
Package-ease of use and handle also significantly influence I).
consumer purchase intention [11].
TABLE II: SUMMARY OF DEPENDENT VARIABLES (N = 410)
D. Conceptual Framework Development Number of Cronbach’s
Variable
items Alpha
To sum up, the conceptual framework of the research is Purchase Intention (PURINT) 5 .784
built based on the study of [4], [5], [10], and [11] with three Brand Image (BRANIMAG) 5 .832
main hypotheses:
H1: Product Packaging Elements positively affect Brand Similarly, two questions measuring PURINT and
Image. BRIMAG are deleted to increase the value of Cronbach‟s
H2: Product Packaging Elements and Brand Image Alpha to 0.784 and 0.832, respectively (Table II). These two

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 International Journal of Trade, Economics and Finance, Vol. 9, No. 1, February 2018

dependent variables reflect 57.1113% of the total variance, purchase intention. Besides, PAEOUNOH, PAFOPISH,
with the KMO of 0.825 and the value of Bartlett‟s Test of PAINFO, PACOLO, and PAMATE also have a positive
0.000. association with BRIMAG, at r = 0.440, r = 0.457, r = 0.415,
r = 0.459, r = 0.363 respectively. It indicates the higher
percentage of the usage of every product packaging element,
IV. RESEARCH FINDINGS the higher perception of brand image in consumers‟ mind.
A. Demographic Characteristics of Respondents C. Testing Hypotheses
Firstly, two multiple regression analyses are conducted to
TABLE III: DEMOGRAPHIC CHARACTERISTICS OF RESPONDENTS (N = 410)
find the direct effects between Product Packaging Elements
Frequency Percentage
(n) (%)
on Brand Image and Purchase Intention, which is the
1. Gender hypothesis H1 and H2. After that, H3 is examined by the
Male 151 36.8 bootstrapping method [41]. Particularly, the absence of the
Female 259 63.2 number zero between the lower (LLCI) and upper (ULCI)
2. Have you ever bought any tea products? boundary of the confidence interval indicates a significantly
Yes, I have bought before 351 85.6 indirect effect and vice versa.
No, I have not bought before 59 14.4
3. Do you like drinks made by tea? 1) Factors directly affecting brand image (H1)
Yes 387 94.4
No 23 5.6 TABLE V: COEFFICIENTS OF BRAND IMAGE (BRIMAG)
4. Have you known about Phuc Long Coffee and Tea brand? Unstandardized
t Sig.
Yes, I have known before 401 97.8 Coefficients (β)
No, I have not known before 9 2.2 (Constant) 1.385 7.591 .000
5. Have you ever bought any products of Phuc Long PAEOUNOH .125 2.176 .030
Coffee and Tea brand? PAFOPISH .199 3.658 .000
Take-away products 213 52.0 PAINFO .112 2.342 .020
Packaged products 23 5.6 PACOLO .187 3.891 .000
I have bought both take-away and 147 35.9 PAMATE -.009 -.173 .863
packaged products a. Dependent Variable: BRIMAG: Brand Image
I have not bought any products of b. Predictors: (Constant), PAMATE: Packaging Material, PACOLO:
this brand 27 6.5 Packaging Color, PAINFO: Packaging Information, PAFOPISH:
Packaging Font, Picture and Shape, PAEOUNOH: Package Ease of Use
Table III illustrates the profile of 410 respondents living in and Handle
c. ANOVA: F(5,404) = 35.117, Sig. = .000, p < .05
HCMC. The number of female respondents nearly doubles
d. Model summary: R Square = .303
that of male (63.2% compared with 36.8%). Additionally, the
majority have bought tea products and also favor it, at 85.6% From Table V, PAMATE has the significance value of p =
and 94.4% of the total, respectively. Surprisingly, Phuc Long 0.863 > 0.05, indicating that there is no association between
brand is quite famous since up to 401 respondents knew about PAMATE and BRIMAG. Meanwhile, with the significance
it. Regarding products, whereas more than half of the value of p less than 0.05, PAEOUNOH, PAFOPISH,
participants have bought take-away products, packaged items PAINFO, and PACOLO positively affect BRIMAG, with the
were purchased by only 5.6% of respondents. Besides, 35.9% β-value of 0.125, 0.199, 0.112 and 0.187 respectively. These
of respondents said that they have bought both of them. Lastly, factors of product packaging reflect 30.3% of the total
6.5% of the respondents have not bought any Phuc Long‟s variance of brand image.
products.
2) Factors directly affecting purchase intention (H2)
B. Correlations between Variables
TABLE VI: COEFFICIENTS OF PURCHASE INTENTION (PURINT)
Unstandardized
TABLE IV: CORRELATION MATRIX BETWEEN PRODUCT PACKAGING ELEMENTS, t Sig.
Coefficients (β)
BRAND IMAGE AND PURCHASE INTENTION
(Constant) .893 3.858 .000
PURINT 1 2 3 4 5 6
PAEOUNOH -.088 -1.290 .198
1. PAEOUNOH .278
PAFOPISH .170 2.592 .010
2. PAFOPISH .376 .541
PAINFO .075 1.302 .194
3. PAINFO .308 .661 .461
PACOLO .149 2.575 .010
4. PACOLO .375 .515 .577 .473
5. PAMATE .303 .634 .516 .596 .471 PAMATE .074 1.228 .220
6. BRIMAG .395 .440 .457 .415 .459 .363 BRIMAG .263 4.454 .000
Mean 3.266 4.009 3.705 3.951 3.669 3.790 3.731 a. Dependent Variable: PURINT: Purchase Intention
SD .6913 .6730 .6248 .7512 .6907 .7011 .6134 b. Predictors: (Constant), BRIMAG: Brand Image, PAMATE: Packaging
Material, PACOLO: Packaging Color, PAINFO: Packaging Information,
PAFOPISH: Packaging Font, Picture and Shape, PAEOUNOH: Package
From Table IV, PURINT correlates significantly and
Ease of Use and Handle
positively to the other variables in the research: BRIMAG (r = c. ANOVA: F(6,403) = 20.028, Sig. = .000, p < .05
0.395), PAFOPISH (r = 0.376), PACOLO (r = 0.375), d. Model summary: R Square = .230
PAINFO (r = 0.308), PAMATE (r = 0.303) and
PAEOUNOH (r = 0.278). In other words, an increase in the PAEOUNOH, PAINFO, PAMATE has the p-value of
percentage of the usage of every product packaging element 0.198, 0.194, and 0.220 respectively, indicating no direct
or in the perception of brand image leads to an increase in effects between these variables and PURINT (Table VI).

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 International Journal of Trade, Economics and Finance, Vol. 9, No. 1, February 2018

However, the significance value of the other variables is less higher intention consumers want to engage in that brand. As a
than 0.05. Particularly, PAFOPISH, PACOLO and BRIMAG result, it can significantly increase the brand‟s revenue.
has direct associations with PURINT, at the β-value of 0.170, Additionally, brand image is a good mediation role between
0.149, and 0.263 respectively. These components of product product packaging elements and purchase intention.
packaging and brand image together contribute 23.0% of the Especially, the factors of product packaging are PAEOUNOH
total variance of purchase intention. (β = 0.0329); PAFOPISH (β = 0.0523); PAINFO (β = 0.0296);
3) Indirect effects of product packaging elements on and PACOLO (β = 0.0491) (Table VII). These results support
purchase intention through the mediating role of brand the study of [5].
image (H3) In terms of direct effects, with the β-value of 0.170 (Table
Based on the bootstrapping method [41], PAEOUNOH, VII), PAFOPISH is the second most influential factor to
PAFOPISH, PAINFO, and PACOLO are found to have the PURINT. It can be concluded that packaging pictures which
indirect effects on PURINT through the mediating role of are easy to remember, or notice and identify can increase
BRIMAG, at 0.0329, 0.0523, 0.0296 and 0.0491 respectively. consumer purchase intention. Similarly, if company chooses
However, PAMATE does not because there is a number zero the font which is readable from distance, or easy to remember,
falling between LLCI and ULCI (Table VII). consumers are more willing to buy products of that company.
Packaging shape which is easy to remember, or find in stores
4) Path Analysis and Total Causal Effects
also results in higher consumer purchase intention. Moreover,
In short, PAFOPISH and PACOLO influence directly and PACOLO (β = 0.149) also has a significant relationship with
also indirectly PURINT through the mediating role of PURINT (Table VII). Consumers are more likely to prefer the
BRIMAG. The remaining independent variables colorful package, especially which helps them remember
PAEOUNOH and PAINFO only have indirect effects. Also easily, draws their attention or differentiates the package with
worth noticing is that PAMATE does not have any others. These results are similar with that of [4] and [10].
associations and items measuring PASIZE are not reliable Furthermore, time pressure and the level of involvement of
enough. Besides, BRIMAG also directly affects PURINT. the product are not analyzed in this study compared with that
These findings are illustrated in the path diagram (Fig. 1). of [10]. Besides, no findings are found to support the
relationship between PASIZE and PURINT while [10]
concluded the existence of this relationship. This may due to
the difference in the example of product: between food and
beverage products.
Moreover, the result of this research pointed out a new
factor acting as a mediation role in the relationship between
product packaging elements and purchase intention to the
study of [4]. That is brand image. Besides, it is concluded that
Fig. 1. Path diagram.
PAINFO directly affects PURINT [4], but this variable only
Besides, based on the rule of [41], the calculation of direct, has indirect relationship with PURINT in this study. There is
indirect and total causal effects are shown in Table VII. also no statistic results proving the relationship between
Particularly, the total effect of PAINFO (β = 0.0296), or PAMATE and PURINT in this research compared with that
PAEOUNOH (β = 0.0329) on PURINT is trivial while that of of [4]. The reason to explain these differences may be the
PACOLO (β = 0.1981), or PAFOPISH (β = 0.2223), or context of the study, between India and Vietnam.
BRIMAG (β = 0.2630) is low to moderate. However, the Last but not least, the results of this study also supported
effect of the whole independent variables (PAEOUNOH, that of [11]. Nevertheless, PAEOUNOH are found to have
PAFOPISH, PAINFO and PACOLO) on PURINT through only indirect associations with PURINT through the
the mediating role of BRIMAG is 0.7459, indicating a very intervening role of BRIMAG instead of direct ones. How
strong relationship [42]. consumer experience the product; especially seeing, handling
or using is also not included in this study.
TABLE VII: DIRECT, INDIRECT AND TOTAL CAUSAL EFFECTS
Causal Effects B. Limitations and Implications for Further Research
Variable LLCI ULCI
Direct Indirect Total Firstly, in this study, how consumers intend to buy a certain
PAEOUNOH --- .0329 .0329 .0070 .0636 product or service is analyzed by only investigating factors of
PAFOPISH .170 .0523 .2223 .0246 .0857
PAINFO --- .0296 .0296 .0077 .0545
the package and brand image. However, this variable does not
PACOLO .149 .0491 .1981 .0235 .0791 solely depend on these components. One suggestion is that
BRIMAG .263 --- .2630 ---- ---- this model should combine the perception of product quality
Total .582 0.1639 .7459 [11] and the preference for a specific brand [43] as the
mediation variables. As a result, a more comprehensive study
on how consumer purchase intention is influenced can be
V. DISCUSSION, LIMITATION AND RECOMMENDATION achieved.
Another limitation is the total number of respondents of this
A. Discussion of the Findings research, which is 410 valid responses after collecting data.
BRIMAG has the highest total causal effect on PURINT (β The whole process of data collection occurred in HCMC,
= 0.2630) (Table VII). The better image the brand owns, the Vietnam. Therefore, some modifications or changes in the

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 International Journal of Trade, Economics and Finance, Vol. 9, No. 1, February 2018

results may exist or even these outcomes may not be true in tea leaves in the package under some following forms: (1)
other studies conducted in different backgrounds. Slider, (2) EZ to Close, or (3) Press to Close (Fig. 2) [44].
Nevertheless, repeated studies with a larger sample size are These types provide consumers to easily re-close the product
encouraged to confirm these results and to make the and to have ensure clean and safe storage.
generalization to the whole industry.
Furthermore, the major difficulty when conducting this
research is in carefully watching over all respondents when
doing the survey. We cannot be sure that all of the participants
fully understand the whole content of the questionnaire
because we could not explain every question in details for the
respondents due to the lack of time. On the other hand, when Fig. 2. Different forms of a product packaging.
misunderstanding some questions, they still continued to do
the survey instead of asking. It results in some dishonest or Some guidelines for building a strong image are also
inaccurate responses. Further studies should engage more presented.
time in the data collection process so they will receive less (a) Tea brands need to identify who target consumers are,
biased responses. determine where the brand is in those minds, define what the
Last but not least, tea industry with the example of Phuc value is, and develop what the key message for this group is.
Long‟s packaged tea products, which is the scope of this study, (b) All types of promotion mix should be performed such as
is one of the limitations of this study. In particular, the broadcast advertising, direct marketing, personal selling, or
criterion of the packaging process are completely point of sale displays.
distinctively for a wide range of products, so how consumers (c) For some tea brands especially Phuc Long Coffee and
perceive the package of tea products and that of others is Tea House, which sells both take-away and packaged
different. Therefore, the questionnaire design should be products, consumer service should also be taken into
adjusted before being applied. Moreover, since Phuc Long is consideration. If more consumers purchase take-away
currently very popular in HCMC, some bias towards its products, the purchase intention for packaged items is also
products may be included when participants answer the higher. Consumers will think of this brand more when they
questionnaire. It is recommended that further studies should need to buy a gift for their seniors, or want to make a cup of
analyze packaged tea products from other brands or even tea at home. Therefore, a good consumer service is needed for
other kinds of products to test whether these results are the these kinds of tea brands.
same or not. In short, those are the recommendations for the package of
tea products and some suggestions in building a good brand
C. Recommendations for Tea Industry image. Vietnamese tea brands should combine both two steps
Based on the research‟s findings, recommendations for a to increase consumer purchase intention.
good package of tea products are provided as follows.
(a) Appropriate and eye-catching pictures should be put on REFERENCES
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